Forecasting future by WD gann methods.

Everything in the nature moves in cycle as a result of action reaction.There are major cycle and minor cycle.

by studying past we can predict the future. Each cycle starts from extreme high or low.

major cycle:

major cycle are important to forecast future.

great cycle :
60 yrs cycle.
50 yrs cycle/jubelee cycle it vary 7x7= 49 to 50,
30 yrs cycle is very important as it is the half of 60 yrs cycle.
20 yrs cycle
15 yrs cycle
10 yrs cycle.or 120 months cycle. stocks has high or low every 10 yrs.
7 yrs cycle or 84 months cycle,42x2,21x4 is also important. 12x7
5yrs cycle



minor cycle:

3yrs cycle
1yrs  cycle
11/12 months cycle


Rules:

Monthly moves:

weekly moves

Hourly moves:

Bull and bear year:

Important points to remember in forecasting:

Time is the most important factor, untill sufficient time passed a large move will not happen.

How to make a annual forecast:

As future is the repetition of past, so to make a forecast in future a past cycle is important.

previous 10, 20 yrs cycle has importance in future cycle.

Indivisual stocks:

How to use Gann fans in trading?

How to use Gann fans in trading?

Gann fan is drowning tool used in trading, William Delbert Gann developed it, and it is considered a popular trading
 tool. Many traders used this incredible tool for decade. So Gann Fan is the most well know indicator and it was
used by Gann. 

So, series of angles basically compose Gann fan which has drawn from a pivot low or pivot high.

Gann fan has prime angle and other 8 ones, so the prime angle of it is a 45 degree 1*1 while in uptrend and
315 degree while in downtrend.  The other 8 rest angles are 1*2, 1*3, 1*4, 1*8, 2*1, 3*1, 4*1, and lastly 8*1.

Trading methods using Gann fan:

In two ways we can use Gann fan indicator, by using it for trend reversal trades and trend following. Gann fan
 indicator can predict the possible trend line or reversal points or retracement; in addition it basically functions
 as trend lines. 

Trend Continuation:

Depending on the trend direction, Gann fan indicator works as support and resistance lines like trend lines.
 In the case of an uptrend, we can use Gann fan to enable us to determine possible support areas and pullback
 zones. We can distinguish between the trend lines and Gann fan where the first one requires two low points in
an uptrend, whereas in the second require one high and one low point. Thus traders can enter into trade early
because Gann fan does not require, like trend line, two high points.

We can see Gann fan indicator in an uptrend through 4 hour chart of GBP/USD. By connecting one low point (1)
 and one high point (2) we got 1*1 line of Gann fan.  The angles 2*1 and 3*1 are considered as possible reversal
point and support.  In this chart this pair has got support from 3*1 line of Gann fan and it bounced back to the
prevailing uptrend.

Another example after 4 hour in chart of GBP/USD we can see Gann fan trend following trading method in a
downtrend. So we find that 1*1 line has drawn by taking 1and 2 points, and we can see clearly the point 3 is
showing a pullback from the resistance. We conclude that after getting resistance from 3*1 lines, the currency
 pair has continued its prior downtrend.

Trend Reversal:

We can use Gann fan to trade trend reversals, and it is similar to the method to trend line breakouts. A bullish
 reversal can be confirmed by a down trend line breakout, and as we know before that Gann fan is similar to trend
 lines, thus trend reversal signals can be used by these lines.

In this example, we can see a bullish trend reversal in 4 hour chart of USD/CAD. And by connecting point 1 and
point 2 we can draw Gann fan. Thus entry signal generated as soon as candle breaks out 2*1 lines for long position. And we should take exit signal when candlestick hit or touches 4*1 or 8*1 line.

Now 4 hour chart of USD/CAD, we can see breakout, and entry and exit signal for a short position.

We can draw 1*1 lines by taking point 1 and point 2. As soon as candlesticks break down 2*1 lines, traders
enter into a short position. So as soon as candle hits 4*1 lines, an exit signal should be taken.

Summary

Gann fan indicator can be combined effectively with many other indicators like Fibonacci retracements, trends
lines, etc. so in order to draw Gann fan properly it is crucial to identify low points and swing high.

How to use Gann fans in trading?

How to use Gann fans in trading?

Gann fan is drowning tool used in trading, William Delbert Gann developed it, and it is considered a popular trading tool. Many traders used this incredible tool for decade. So Gann Fan is the most well know indicator and it was used by Gann. 

So, series of angles basically compose Gann fan which has drawn from a pivot low or pivot high.

Gann fan has prime angle and other 8 ones, so the prime angle of it is a 45 degree 1*1 while in uptrend and 315 degree while in downtrend.  The other 8 rest angles are 1*2, 1*3, 1*4, 1*8, 2*1, 3*1, 4*1, and lastly 8*1.

Trading methods using Gann fan:

In two ways we can use Gann fan indicator, by using it for trend reversal trades and trend following. Gann fan indicator can predict the possible trend line or reversal points or retracement; in addition it basically functions as trend lines. 

Trend Continuation:

Depending on the trend direction, Gann fan indicator works as support and resistance lines like trend lines. In the case of an uptrend, we can use Gann fan to enable us to determine possible support areas and pullback zones. We can distinguish between the trend lines and Gann fan where the first one requires two low points in an uptrend, whereas in the second require one high and one low point. Thus traders can enter into trade early because Gann fan does not require, like trend line, two high points.

We can see Gann fan indicator in an uptrend through 4 hour chart of GBP/USD. By connecting one low point (1) and one high point (2) we got 1*1 line of Gann fan.  The angles 2*1 and 3*1 are considered as possible reversal point and support.  In this chart this pair has got support from 3*1 line of Gann fan and it bounced back to the prevailing uptrend.

Another example after 4 hour in chart of GBP/USD we can see Gann fan trend following trading method in a downtrend. So we find that 1*1 line has drawn by taking 1and 2 points, and we can see clearly the point 3 is showing a pullback from the resistance. We conclude that after getting resistance from 3*1 lines, the currency pair has continued its prior downtrend.

Trend Reversal:

We can use Gann fan to trade trend reversals, and it is similar to the method to trend line breakouts. A bullish reversal can be confirmed by a down trend line breakout, and as we know before that Gann fan is similar to trend lines, thus trend reversal signals can be used by these lines.

In this example, we can see a bullish trend reversal in 4 hour chart of USD/CAD. And by connecting point 1 and point 2 we can draw Gann fan. Thus entry signal generated as soon as candle breaks out 2*1 lines for long position. And we should take exit signal when candlestick hit or touches 4*1 or 8*1 line.

Now 4 hour chart of USD/CAD, we can see breakout, and entry and exit signal for a short position.

We can draw 1*1 lines by taking point 1 and point 2. As soon as candlesticks break down 2*1 lines, traders enter into a short position. So as soon as candle hits 4*1 lines, an exit signal should be taken.

Summary

Gann fan indicator can be combined effectively with many other indicators like Fibonacci retracements, trends lines, etc. so in order to draw Gann fan properly it is crucial to identify low points and swing high.

Gann analysis and paralysis

Gann most commonly used monthly ,weekly , and daily chart.


weekly charts are excellent tools for trading analysis
weekly chart shows 5 years price action.
Normal change of trend in weekly chart is minimum 3 weeks.
on weekly chart , most important part of the cycle is 60 weeks./points
30 weeks also imporant but secondary.
on weekly and monthly chart angle acts as strong support and resistance.


Gann used change of price with time , if no change is evident cycle is not valid.

example: Price rises for 270 days up(High) and than correcting  90 days down(low).then the price will rise again.


typical long term cycle 7 yrs or 5 yrs and short term cycle 90 days cycle.



Gann angle:

Usual angle 1x1 , 45 degree, most reliable,accurate angle.

Monthly or weekly chart 2x1,3x1 angle
3x1,4x1,8x1 angles are in the daily or intra day chart occurs during rapid movement.





Daily cahrts are most glamourous and most dangerous .




Most difficult chart are intraday chart.



two types of cycle in gann
1. Time cycle or natural cycle
2. Price cycle of stock or index or commodities

natural cycle of 1 yr or 52 weeks , 26, 13 weeks are cardinal points, as total 1 yr is 360 degree, so cardinal degree are 180, 90,45,

here 1 yr is 52 weeks , it makes square of 52.
1 cycle = 52 weeks
2 cycle =104 weeks
10 cycle = 10 years= 520 weeks

Major cycle
30 yrs cycle= 360 months
15 yrs=     180 months
7and half year= 90 months
5 yrs = 60 months

these are natural cycle.

High, low, range of price is squared with time.



square of of 52:
Is used for weekly charts.
master calculator for weekly chart.

• if u have patience and discipline use monthly and weekly chart  use daily chart for entry.

your success of trade will be high..

Trading with gann Method easy: SQUARING CURRENT PRICE WITH TIME FROM A PRIOR CHANGE IN TREND

look at the picture .
Its 4hrs chart shows data of  5 months 8 days.

See for top and bottom for resistance and support.


See  high 21.01.2014 .912 which is converted to 912(january 21, 2014)

low at .870 which is converted to 870 march 13, 2014.

CD ( counting day) = 52 days.= 353 degree.
TD( trading day)  = 38 day = 165 degree.
Closing price .872= 872= 15 degree

look here Closing price makes right angle with TD, Lowest price makes right angle with CD.
U may see gann cirlcle to see how these are make right angle.

Gann trading made easy.

look at the 4hrs chart below this is USDCHF pair.


look carefully here trend is down.
Resistance is formed by double tops, look 2nd top right , it is also forms head and shoulder. So it is reversal pattern, the trend will reverse from here and will form down trend.
its price is .910 to .916, Here highest peak is .916 its acts as resistance, .910 is the peak of double tops.
we can multiply it with 1000, the result will 910-916, It is strong resistance.


Points in favour of resistacne:
double tops.
Head and shoulder
the price is located in cardinal  cross line.
also see highest price and lowest price make angle of 90 degree.it is strong s/r

so conclusion , trend is down, price is on retracement.


also look at the chart below , the retracement price is .886, that is .886*1000= 886.

look 886 also make an angle of 45 degree with both 871 and 910, it is located  in between two.

So the price will go down .

We can also look highest price also make and right angle with highest and lowest price.
Right angle indicates strogn support and resistance and end of trend at that moment, and 45 degree angle indicates retracement.

Trading with divergence and hidden divergence

look at the picture

Daily chart

trend line  indicates up trend.
Candlestick shows price is retracing back to up

So the trend is up and we will look for buy entry.

Now 4 hrs chart

look at the picture
Here I have used fibbonacci fan, Stochastic . look at the picture
Here there is hidden divergence and price retracement on 61.8% fib fan
Also look candlestick which also shows reversal.
So it is the time to enter the trade, also put SL , Below d3, TP  target 1 D2, target 2 1.27% fibbos expansion.

Trading with divergence and hidden divergence

look at the picture

Daily chart

trend line  indicates up trend.